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Book. ^ 8 & 

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COPYRIGHT DEPOSIT. 



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Profitable 

Stock Exchange 

Investments 




PRINCIPAL AND INTEREST 
GUARANTEED 




Henry Voorce 
Brandenburg & Co. 

(INCORPORATED) 

BANKERS 

6 WALL STREET, NEW YORK, N T. 


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The library of 

GONGRESS, 

Two Copies Received 

dec. 4 1901 

Copyright entry 
CLASS Cts*X& No ' 

% I ^ i^r 

COPY B. 



.•• ••. ••• 



Copyrighted igoi 
Henry Voorce Brandenburg <Sf Co. 



PREFACE 



THIS book is published to 
show the absurdity of 
trying to make money specula- 
ting in Wall Street without 
adequate capital and the ease 
with which it can be made with 
capital and proper methods. 
The following pages open 
to the public a safe, conserva- 
tive, and highly remunerative 
channel for the investment of 
their surplus funds, which does 
not have the element of risk 
and uncertainty that exists in 
general business. 



PROFITABLE 
STOCK EXCHANGE 

INVESTMENTS 



You read a great deal about the 
money lost in Wall Street. 

As a matter of fact there isn't 
any money lost in Wall Street. 

It simply changes hands. 

People talk loosely about gam- 
blers and speculators losing all 
their money in the end. 

If money is lost, somebody has 
got to win it. 

The people who go plunging 
around in Wall Street making all 
sorts of speculations on margin 
naturally lose their money. They 
ought to expect to lose it, and they 
ought to lose it whether they ex- 
pect to or not. They are simply 
gambling with all the odds against 
them. 

Meanwhile, the wise and shrewd 
operators follow prudent, business- 
like methods and get the money. 

The Vanderbilts, Goulds and 
Morgans of Wall Street are some- 
ir 



times described as robbers waiting 
in their dens to slaughter the poor 
innocents who venture within 
reach. That is all nonsense. They 
win because they know how to play 
the game, and others who have 
sense enough and patience enough 
to play the game in the same way 
will win too. They absolutely can- 
not help winning. 

The purpose of this book is to in- 
form the reader fully as to the 
methods by which money can be 
taken out of Wall Street — the 
methods used by the successful 
operators of the past twenty years 
to our knowledge — the methods 
which positively must win year in 
and year out. 

We purpose to give the public 
an opportunity to make a safe and 
profitable investment in Wall 
Street, and have their money 
handled for them according to cor- 
rect and profitable methods. 

The men who win in Wall Street 
are those who invest in stocks — 
good, dividend-paying stocks, buy- 
ing them when they are low, selling 
them when they are high. 

This is not gambling nor specu- 



lation any more than any legiti- 
mate business is gambling or spec- 
ulation. 

In all classes of business we buy 
at a certain price, and sell at a 
higher price. 

We buy under the most advan- 
tageous . circumstances possible, 
paying the least possible price and 
selling at the highest market price. 

This is what we are doing in 
Wall Street, and as we handle only 
the stocks of- sound and stable cor- 
porations, the security behind our 
operations will be the strongest in 
the world. 

The gist of the matter is that the 
stocks of the leading and most 
stable corporations of the country 
are tossed about in Wall Street 
from speculator to speculator, go- 
ing up and down constantly and 
varying enormously in the prices at 
wdiich they are bought and sold. 

These changes in prices are near- 
ly always due to a feverish and ex- 
cited market. The stocks them- 
selves do not actually vary in real 
value. They are w^orth a certain 
sum all the time. They are paying 
dividends on that sum and the 
*3 



stocks at their real value are always 
a good investment. Yet by the 
manipulations of the speculators 
and on account of the exigencies of 
these Wall Street marginal gam- 
blers such stocks can be bought at 
times at a fraction of their value, 
and by reason of the same causes 
can be sold at other times for far 
more than they are really worth. 

The men who make the money in 
Wall Street are those who know 
what stocks are really worth and 
who buy when prises. go down and 
sell when they go up, buying and 
selling the same stocks over and 
over again, and making a hand- 
some profit on every transaction. 
They do not care how low a stock 
they hold goes for the reason that 
the stock belongs to them, they 
know what it is actually worth as a 
dividend payer, and in the sky- 
rocket performances of the specu- 
lators of the Street they take no in- 
terest except as it gives them op- 
portunities to buy and sell. They 
do not care how high a stock goes ; 
they have no shortages to cover, 
but can simply sit back and sell as 
much of their holdings as they 
14 



choose whenever they see an op- 
portunity to make a big turn. 

Such men will turn a block of 
stock in a given corporation over 
and over dozens of times in the 
course of a year, making so much 
money on it that even if the stock 
should disappear off the face of the 
earth altogether, they would still 
be far ahead on it, simply on ac- 
count of the numerous advances 
and declines. 

By owning stocks in a large 
number of good, sound corpora- 
tions, they will average to make a 
certain sum of money every day in 
the year. They spread their in- 
vested capital over a wide field in 
this manner, and the laws of aver- 
age make them sure gainers at 
every stage of their operations. 

This is, as you will observe, very 
similar to the principles upon which 
the great life insurance companies 
are managed. 

Many of these commenced busi- 
ness starting with but a few thou- 
sand dollars, and they now have 
assets of millions. They have piled 
up this enormous wealth by insur- 
ing the lives of human beings. 
15 



Every company which has not 
succeeded has failed because it did 
not issue a certain number of poli- 
cies. 

The secret of success is the large 
number of risks reducing the 
chance to a minimum. 

No life insurance company could 
succeed if it insured but a few lives. 

By the law of average, insurance 
companies can tell just how many 
of the people they insure will die 
each year. 

When you make an application 
for life insurance the first question 
they will ask is your age, and by 
referring to their tables they can 
tell you the month and day when 
you will die. Now, you may not 
actually die upon that day, but you 
do theoretically, and the point is 
that they have so many risks that 
the law of average, always prevail- 
ing, in the end brings everything 
out just as figured. 

The fact that one person lives 
longer than the date when his life 
should end is offset by the fact that 
another person dies sooner than 
expected, and thus the law of aver- 
age is absolutely maintained. 
16 



The postal authorities could not 
come anywhere near telling how 
many letters would be mailed in the 
City of New York on a certain day, 
but they can come with remark- 
able closeness to the average for 
a year in advance, and predict with 
certainty, how many people will 
write letters and forget to address 
them during that time. 

It is by the working out by the 
law of average as best exemplified 
by the insurance business that it is 
possible to work out a plan by 
which Wall Street stocks can be 
dealt in with absolute safety and 
certain profit. 

Of course, no man or company 
could purchase one hundred shares 
of stock without the risk of a loss. 
That is to say, no man should make 
a purchase of this kind unless he 
is in a position to buy again and 
again many times over and still 
hold all that he has previously pur- 
chased. 

Buying a certain quantity of 
stock in one corporation is very 
much like an insurance company 
insuring the life of one man. But 
when you buy thousands of shares 
17 



of stock in various corporations, 
some stocks going up and some 
going down, the law of average is 
an absolute protection and the sta- 
tistics of stock fluctuations for the 
past twenty-five years show be- 
yond the possibility of doubt that 
this is true. 

The fluctuations in the prices of 
good, dividend paying stocks are 
something remarkable. Some ac- 
tive stocks show a fluctuation of 
five thousand times their value in 
a year, thus offering a continual 
opportunity for money making. 

These are the stocks which are 
constantly speculated upon, the 
stocks on which so much money is 
lost and upon which the cool head- 
ed and careful operators make so 
much. 

The Western Union Telegraph 
Company's shares have always 
paid 5% dividend, and the average 
market price has been about 90, 
making the income about 5^. Now, 
suppose it is purchased in ten- 
share blocks on every one per cent, 
decline and none sold above the 
average price, it will show an in- 
come of more than 43% per an- 
num, besides some dividends. 



Suppose the very worst were to 
happen and there was a 20 point 
decline in Western Union, then we 
would have 



10 shares at 90. 

89. 



10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 



87. 

86. 

85- 
84. 

83- 
82. 
81. 
80. 

79- 
78. 

77- 
76. 

75- 
74- 
73- 
72. 

7i- 
70. 



$900 
890 
880 
870 
860 
850 
840 
830 
820 
810 
800 
790 
780 
770 
760 

75° 
740 

730 
720 
710 
700 



Total Investment $16,800 

It will be seen that $16,800 will 
handle a ten-share lot of Western 
Union Telegraph through a regu- 
lar "Black Friday" panic, with a 
resulting investment as stated 
above. It must be borne in mind 
19 



that the average prices of these 
purchases is 80, giving a dividend 
of 6% on the investment, but when 
the market has resumed its normal 
condition (90), the profits will be 
$2,100, exclusive of dividends. 

If lots of 100 shares each were 
purchased, there would be profits 
of $21,000 exclusive of dividends. 

The shares of the American 
Sugar Refining Company fluctuate 
4,900 times their par value even- 
year, and our method applied to them 
will give a profit of from 200 to 300% 
per annum, exclusive of dividends. 

While we refer to the possibilities 
in making investments in Western 
Union and American Sugar Com- 
pany's shares, we include in our 
operations a number of different 
securities, all at the same time. 

For instance, when we would 
purchase one hundred shares of one 
stock, we divide it into five or ten 
different lots and do the same thing 
in, say, ten or twenty different 
stocks all at the same time; there- 
fore, instead of having on hand a 
few large lots, we have two or three 
hundred small lots, purchased 
down to the lowest prices, and by 



purchasing outright a large quan- 
tity in little 'lots" at different 
prices, the average cost eliminates 
the risk of loss and insures certain 
profits. 

According to the results of specu- 
lation and manipulation, the twenty 
different stocks that we deal in do 
not usually all go down at the same 
time. Some are going up, while 
others are going down ; therefore, 
we are receiving profits in one, 
while making advantageous invest- 
ments in another. 

We have been established in Wall 
Street for a number of years, and 
we know about the various stocks 
on the market, their value and 
earning capacity. We know the 
stocks which are most sought af- 
ter by investors, and the stocks 
which are used by speculators to 
make money out of the public. 

We now offer to the public 
the best plan for a legitimate 
investment speculation. We have 
an authorized issue of $500,000 de- 
benture bonds due and payable in 
three years, with interest at 5%, 
payable semi-annually, for the pur- 
pose of buying and selling stocks 



and securities as dealt in upon the 
stock exchanges of New York. 

In consideration of one-half of 
the net profits accruing from these 
investments we guarantee the bonds 
and interest at the rate of 5%, and 
conduct, manage and direct the 
business. 

We distribute the net proceeds 
on the first of every month, one- 
half to the bondholders and one- 
half to our company. 

These bonds are issued in sums 
of $25 and upwards, as purchasers 
may direct, and are transferable 
only upon the books of the 
company. 

The first thing to be sought, is 
absolute safety in investment. Only 
sound, dividend paying securities 
will be bought and only at a bargain 
when it is known beyond question 
that the price is below their actual 
earning power. Having purchased 
and paid for the securities the 
bondholders become the owners of 
them, and they will be placed in 
our vaults until such time as they 
can be sold at a handsome profit. 

No get-rich-quick methods will 
be used, and no speculation in- 
dulged in. 



Xo large amount of money will 
ever be tied up in one stock. 

The operations will be spread 
over a large amount of ground, 
making small investments in prop- 
er securities, thus practically elimi- 
nating all risk of loss. It is more 
certain than life insurance business. 

The chances of loss will be con- 
siderably smaller than they would 
be in banking, manufacturing or 
mercantile enterprises. 

Purchases will commence when 
a stock is over-depressed and evi- 
dently selling below its real value. 

Purchases will continue so long 
as the price continues to go down. 

These stocks will then be held 
and we will have every advantage 
over the market, instead of the 
market having the slightest advan- 
tage over us, as it does over nine- 
ty-nine out of a hundred specula- 
tors. 

When the speculator is forced to 
sell at a low price we begin to buy. 

When he is forced to buy at a 
high price we will be ready to sell. 

We have the advantage over the 
market at every stage of the game. 

The market cannot force us to 
2 3 



do anything because we are in a 
position to do precisely as we 
please. 

This business is strictly cash, 
buying for cash and selling for 
cash, trading in securities of strong, 
dividend paying corporations and 
going steadily forward every busi- 
ness day in the year. 

No credit will be extended or 
asked. 

There will be no bad debts. 

No money has to be expended 
for plant, equipment or other cost- 
ly things which figure in ordinary 
lines of business. 

Every cent of money will keep 
working all the time, and such of 
it as is not invested will be drawing 
interest in a Trust Company. 

There will be absolutely nothing 
to worry about. 

When we want to buy other peo- 
ple are unloading. They have been 
frozen out and have to sell. 

The more freezing out there is, 
the more panicky things get, the 
better it is for us. 

There is more money to be made 
in one panicky day than there is in 
24 



weeks of ordinary Wall Street 
trading. 

Then, on the other hand, when 
everything is looking first-rate and 
prosperous, Wall Street is full of 
people who want to buy. There is 
where we are ready for them again. 

We bought the stocks when peo- 
ple had to sell them. 

Xow the people want to buy and 
we are right on hand with the 
goods — bought cheap at the prop- 
er time and now glad to sell at a 
goodly profit. 

This method of ours is nothing 
new or untried. It has stood the 
tests of time and made many a 
millionaire. 

It is founded upon the firmest 
possible foundation, and has gone 
over squalls, slumps and panics, 
and in twenty years, to our per- 
sonal knowledge, it has never 
failed to win. 

We know of a number of people 
who have become rich by follow- 
ing this method. We know of 
one man who operated for fifteen 
years. He retired January i, 1898, 
reputed to be worth twenty mil- 
lions of dollars. He never lost, 



paid for what he bought, buying 
proper securities in small quanti- 
ties at a declining market, going 
right along to the bottom still buy- 
ing and then holding on until the 
market was in its normal condition 
and he could pocket his profits and 
be ready to do it all over again. 

You will note that this business 
absolutely cannot be affected by 
financial calamities. 

On the contrary, a panic is a 
blessing. 

It may seem to you that if this 
method of taking money out of 
Wall Street is so simple, that you 
can do it yourself. You certainly 
could if you had the capital, knew 
the stocks and their value thor- 
oughly, could devote your whole 
time to it, and, what is more im- 
portant, had the firmness and will 
power to follow the method and not 
be swerved from it by the tempta- 
tion of speculation. 

Not one man in a thousand can 
go into Wall Street and fail to be 
influenced by the wild speculation 
which is going on there, the ap- 
parent opportunities for getting 
rich in a minute, the tips and 
26 



rumors and all that sort of thing. 
That is precisely why so many peo- 
ple are wrecked in Wall Street, and 
the reason why so few succeed is 
that they have not the patience and 
the cool, calm judgment requisite 
to play the game in the only way 
in which it can be beaten. 

The Manager of our Corpora- 
tion will not be allowed to be in- 
fluenced by anything except our in- 
structions. He will be under suf- 
ficient bond to follow his instruc- 
tions, which will be precisely as 
outlined above. He will be a buy- 
ing and selling machine, oblivious 
to all outside influence. He must 
carry out our orders regardless of 
whatever may happen, and he is a 
man who can be depended upon to 
do it. 

A corporation, being a machine, 
can succeed by this method for the 
reason that it must follow a cer- 
tain outlined course and cannot, 
and dare not, deviate from it by a 
hair's breadth. 

The individual left to himself in 
Wall Street soon finds himself fig- 
uring, speculating, making fore- 
casts, listening to tipsters, reading 
27 



financial newspapers, living with 
one eye on the ticker, and pretty 
soon he has forgotten all about the 
method he intended to follow, and 
is a plain, ordinary Wall Street 
gambler — and the shrewd and cau- 
tious wise heads of the Street soon 
get his money. 

The marginal operator is always 
at the mercy of the market instead 
of having the market at his mercy. 

The wonder is not that so many 
of them lose so much money, but 
that any of them win at all. 

It is only a question of time until 
they are wiped out. The odds 
against them are altogether too 
great, and while they may weather 
a few slight squalls and run along 
smoothly for a time, sooner or 
later disaster comes, generally un- 
expected and overwhelming. 

What is the use of trying to 
make money in Wall Street by 
marginal speculation when the 
odds against you are so great? 

If you want to undertake to 
make money, why not make your 
attempt a scientific one? Why not 
place the money you wish to invest 
where it will be handled in a man- 
28 



ner by which, as shown by the sta- 
tistics of twenty years, cannot fail 
to win. 

It is no more speculation than it 
is for a banker to loan money to 
his friends and associate business 

men. 
In fact, it is not so speculative 

for the reason that we make invest- 
ments in the stocks of companies 
of standing — stocks which are just 
as good as gold, and represent vast 
enterprises, enormous properties 
and great earning power. 

It may be asked, what will occur 
at the end of a year's business if 
some of the stocks are selling 
below the price at which they 
were bought. The answer is that 
they are kept in our vaults be- 
cause they are safe, sound, divi- 
dend-paying stocks, but the deal- 
ings in the securities will show a 
handsome profit, more than 
enough to pay for the shares on 
hand because the numerous little 
purchases and the accompanying 
reactions in these very stocks have 
already resulted in a large number 
of profits. 

Generally speaking, there will be 
29 



no stocks carried a whole year be- 
cause we will never buy except un- 
der forced conditions, and the re- 
actions are generally very prompt, 
so we will be able to sell out quick- 
ly at higher prices. 

It matters not how much you 
may know about Wall Street and 
financial methods and matters in 
general, you cannot figure out a 
way in which we can fail to suc- 
ceed. 

Suppose the worst kind of a 
panic comes, the worst possible 
period of financial depression; 
suppose, we have stocks on hand 
which are going lower and lower; 
suppose, we buy until our buying 
capacity is exhausted, and still 
stocks go down and down ; in what 
way can we be injured? We do 
not owe anybody anything, and 
whatever money we have made is 
in the pockets of our bondholders. 
Nobody has extended any credit to 
us, and nobody can hold a club 
over us. We have no running ex- 
penses that amount to anything — 
no big rents to pay, no insurance, 
or anything else of that sort. There 
is no pay-roll to meet, no big 
3° 



stocks of goods to worry about — 
simply nothing that can squeeze us 
a penny's worth. All that we have 
to do is to wait, and waiting under 
these conditions is the easiest thing 
in the world. 

The stocks we own are all those 
in corporations, concerning whose 
solidity and assets there cannot be 
the slightest shade of doubt. These 
stocks all have a certain value, as 
shown by the earning power of the 
corporations behind them. Sooner 
or later, they have simply got to go 
back to their normal, actual, tangi- 
ble value. So we simply wait until 
they go back there, and that is gen- 
erally a question of a very short 
time. Short or long, however, the 
time must come, and when it does 
come, we are in line to reap the 
richest kind of a harvest. 

There is absolutely no loop-hole 
in this proposition. There is ab- 
solutely less risk of loss than in 
any business or other enterprise 
you can mention. 

It is a business carried on with 
good, hard cash, and with every 
possible advantage in our favor. 

The holder of even one bond of 
31 



$25 stands upon the same footing as 
the owner of a large block, receiv- 
ing regularly the pro rata earnings 

represented by his share. 

The officers and directors are 

well known men of business, thor- 
oughly familiar with Wall Street 
and its methods, most of them hav- 
ing been for many years actually 
engaged in some business requir- 
ing expert financial knowledge. 

The bondholders can be assured 
that their money will be invested 
and handled as set forth in this 
prospectus, first, because the of- 
ficers and directors cannot have 
any motive for doing otherwise, 
inasmuch as they know that the 
method herein outlined is the only 
one which can win in Wall Street. 
They are also protected in every 
possible way, and every desired as- 
surance will be given in this re- 
spect. 

The books and records of this 
Company, open to bondholders, 
will show at all times precisely what 
investments have been made, how 
money has been made upon them, 
what stock are owned by the Bond- 
holders, and so on. 
32 



These records can be compared 
with and verified by the financial 
records of the New York Stock 
Exchange, as published through 
the regular channels, so that the 
bondholder can at all times assure 
himself that we have done just 
what we claim to have done, and 
that he has secured his just and 
equitable share of the profits of the 
operation. 



33 



IVall Street 
Dictionary 



WALL STREET DICTIONARY 

We give below a few definitions 
of some of the more important 
words used in the financial opera- 
tions of Wall Street. 

The Street itself has been the 
center of finance of this country 
for nearly a hundred years, when 
the New York Stock Exchange 
was established. 

Here are offices of the greatest 
and wealthiest financiers the world 
has ever known. 

It is the greatest speculative cen- 
ter in this or any other country. 

Here are found the men who 
create and handle railroads and the 
largest industrial enterprises in the 
world. 

In the Exchange millions of dol- 
lars' worth of stocks and bonds are 
bought and sold every day. 

Here are found hundreds of 
banks, trust and safe deposit insti- 
tutions, private bankers and capi- 
talists, a money center which con- 
trols seven-tenths of all the money 
in America. 

In Wall Street you may buy or 
sell one or more shares of the stock 
37 



of any great railway or industrial 
company in the country. 

Here is where all important en- 
terprises are financed, and where 
the public sends enormous sums of 
money to be invested for specula- 
tive gain. 

rXVESTORS. 

Those who come into the market 
and purchase securities for the pur- 
pose of holding them as safe in- 
vestments for their money, secur- 
ing an interest or dividend income 
thereon. 

SPECULATORS. 

Those who buy and sell upon 
margins for quick profits. They 
are non-producers. They are sim- 
ply gamblers, with the odds badly 
against them. They sometimes 
prosper for a while, but lose their 
money in the end. 

INVESTMENT SPECULA- 
TORS. 

Those w 7 ho buy stocks judicious- 
ly, selecting choice securities 
whose value is well known, buying 
when values are depressed, and 
selling when sufficient advance oc- 
38 



curs to give them a good profit. 
This they repeat over and over 
again, and make money while the 
speculator on margin loses. It is 
to this class that we appeal. 

,k A BULL." 

A speculator who buys expect- 
ing to sell at a higher price. He is 
called "long" on the market, mean- 
ing that he is buying with the ex- 
pectation that the market will go 
up and that he will sell out at a 
profit. His belief not only is that 
prices are going higher, but he 
uses all his influence in every pos- 
sible effort to make them go 
higher. 

"A BEAR." 

A speculator who sells in the ex- 
pectation of a decline. He is called 
"short" of the market. He is sell- 
ing what he has not got. He does 
this in the expectation that prices 
are going down, and that he will be 
able to buy the stocks at a lower 
price than that he has to pay for 
them, and by delivering them at the 
price at which he sold to make his 
profit. He puts up his margin and 
takes his risk. As an illustration of 
39 



what a "bear" is and does, suppose 
you believed that in a week's time 
corn would go down in price; 
therefore, you sell and promise to 
deliver so many bushels of corn at 
a certain price. If corn does go 
down, and you can buy it at a lower 
price than that at which you sold, 
you are a winner. If it disappoints 
you, and it goes up, you have to 
deliver it anyway, and are out of 

pocket. 

"A LAMB." 

A man who thinks he knows all 
about the Wall Street game, and 
bases this belief on the fact that 
he keeps abreast with the times, 
reads all the financial columns in 
the newspapers, wades through all 
the Wall Street papers and watches 
the ticker faithfully and conscien- 
tiously. When he is sure he knows 
all about it he goes jauntily down 
into the Street, and soon discovers 
that he knows nothing about it at 
all. He finds this out just at the 
moment when all his money is 
gone. 

"A FLYER." 

A flyer is a more or less reckless 
gamble, which pretty nearly every- 
40 



body feels strongly inclined to 
make once in a while. When a 
flyer turns out right it is a very 
profitable thing, but the trouble 
with it is that it rarely turns out 
right or anywhere near it. 
7" A BREAK." 
A rapid decline in prices of 
stock. 

"A BULGE." 
A quick upward movement in 
prices of stock. 

"FLAT." 

Stock loaned by one broker to 
another without interest is loaned 
"flat." 

"A HEDGER." 

One who buys a quantity of 
stock, and then for fear he has 
made a mistake, sells the same 
quantity in order to "hedge" 
against the loss that he fears is to 
come. A "hedger" usually makes 
nothing, because the profit on his 
purchase is offset by his sale, or 
vice versa. 

"LIQUIDATION." 

Generally selling out of stocks 
previously purchased by the 
"bulls." 

41 



"MANIPULATION." 
Forcing stocks too high or too 
low by misrepresentations, rumors 
and false sentiments. 

"OPTION." 

A contract that one person will 
deliver to another a certain thing 
at a fixed price within a certain 
time. 

"POINT." 

One dollar or one per cent, a 

share on stock is one "point." 

Stock advances and recedes by 

"points," and is always so quoted. 

"PRIVILEGES." 

"Puts," "calls'' and "option" 
come under the general head of 
"privileges." 

"PROMOTER." 

A broker who secures the capital 
to finance corporations. 

"REALIZING." 

Closing out stocks or contracts 
of any kind to secure profits. 

"SOFT SPOT." 

A general but slight weakness 
shown in prices. 

42 



"AN OVERSOLD MARKET." 
This means a market in which 
the traders have sold "short'' to an 
extent which conditions do not 
warrant. They thereby place them- 
selves at the mercy of the "manip- 
ulators," who stand ready to 
squeeze the "shorts" when the 
proper moment arrives. "AN 
OVERBULL MARKET" means 
the reverse of this situation. 

"RAIDING THE MARKET." 

Concerted action of sellers of all 
descriptions, who discover some 
cause for loss of confidence in the 
maintenance of prices and sell 
right and left every stock for which 
they can find a buyer. 

"A DULL MARKET." 
This describes a market where 
there are few transactions and 
small fluctuations. 

"A HEAVY MARKET." 
One in which prices barely hold 
their own, and are inclined to sag 
off a little during the day, closing 
lower than they opened. 

"NET GAIN." 
The actual amount of profit after 
43 



taking broker's commission, war 
tax, or revenue stamps. 

"GROSS LOSS." 

The entire amount of loss suf- 
fered after adding broker's com- 
mission, war tax, etc., to the loss 
on the transaction. 

"ROUND TURN." 

This means a complete deal after 
having bought and sold or sold and 
bought, as the case may be. For 
instance, in stating a broker's com- 
mission you would say that it 
amounts to one-sixteenth for buy- 
ing and the same for selling, or 
one-eighth for the "round turn." 

"COMMISSION." 

This is the remuneration which 
the broker receives from a custom- 
er in executing orders for the pur- 
chase or the sale of stocks or grain. 
This payment is based on the par 
value of stock or grain bought and 
sold, and not on prices at which the 
transaction was executed. 

"A POINTER." 

Information supposed to come 

from the inside and giving you an 

infallible tip on just what is going 

44 



to happen. Sometimes informa- 
tion of this kind is valuable, but 
rumors of the wildest kind are so 
continuously floating around the 
Street that a "pointer" is more 
than likely to be an unfounded, 
silly rumor, which somehow has 
gotten into respectable company. 
If you know that the information 
comes from a reliable party who 
knows what he is talking about, 
and have money enough so that 
you can make an investment — not 
a speculation on narrow margin — 
and can afford to hold on after the 
methods of this company until 
prices rise, the "pointer" may 
prove a good thing. 

"A POOL." 

A syndicate of men who com- 
bine forces to get control of a 
property. 

"A CORNER." 
When a "pool" or an individual 
quietly buys up the shares of a 
property so that they can absolute- 
ly control it, it is called a "corner." 
Those who succeed in effecting a 
corner will not let the "bears" 
cover their "short," except at ex- 
traordinarily high prices. 
45 



"A SQUALL." 

Depressing news that comes un- 
expectedly upon the market, and 
frightens the timid speculators into 
letting go their holdings. 

"A SLUMP." 

A continuation of depressing in- 
fluences which makes the margin 
dealers sell out. 

"A PANIC." 

A time when most of the "bulls" 
have been wiped out and every- 
body is a "bear" on the market 
and goes "short" because it is the 
prevailing sentiment. 

"Squalls," "slumps" and "pan- 
ics" are disastrous to the ordinary 
speculator, and ruin them by the 
thousands. They represent, how- 
ever, the very best opportunity for 
money making, as has been shown 
in hundreds of instances. They 
will give this Company the chance 
to buy the best sort of securities at 
prices so low as to make big profits 
a certainty. It is under these con- 
ditions that this Company will 
make its purchases. With patience 
enough and capital enough it is 
possible by acting promptly at the 
46 



time when these bargain days oc- 
cur to make more money in Wall 
Street than in any other place in 
the world. 

"A RALLY." 

A state of affairs which exists al- 
most immediately after the public 
has unloaded its "long" stocks and 
put out a "short" line. 

"A CALL. ,, 

A privilege to buy a certain 
number of shares at a given price 
within a certain space of time. 

"A PUT." 
A privilege to sell a certain num- 
ber of shares at a fixed price within 
a given period of time. 

"A SPREAD." 

When an operator buys or sells 
both a "put" and a "call." 

"OX CURB." 
The private dealings made out- 
side the Exchanges. A curb-stone 
broker is a familiar figure and car- 
ries on his business every day in 
Wall Street. 

"INSIDERS." 

There are two classes of Wall 

47 



Street men known as "insiders." 
One is a class which is really in- 
side. Officials of Corporations, of 
banks and Trust Companies and 
wealthy financiers who really con- 
trol the properties dealt in the Ex- 
changes are really "insiders." They 
control the market, but never give 
out under any circumstances any 
information, and in most cases 
they do not know themselves just 
what they are going to do from 
one day to the next. 

The other set of "insiders" are 
those who only make the "lamb" 
think they are on the inside. They 
never have any money of their own 
to speculate with, and they sell 
their "knowledge" to outsiders for 
fraction profits when there are any. 
They advertise and give out their 
pretended information, and have 
it sent out all over the world, 
knowing that every city and town 
may be depended upon to produce 
"lambs." 

BUCKET SHOPS. 

A place where you can bet 
whether a stock will go up or 
down. You do the guessing and 



the "bucket shop" makes the 
money. If you win sometimes you 
get your money back and some- 
times you don't. 

"TIPSTERS." 

The "tipster" in Wall Street is 
like the tout on the race track. He 
pretends to know all about it, and 
is a very solemn and mysterious in- 
dividual. He tells one man to buy 
and another to sell, knowing that 
whichever way the market goes 
one of them will be a winner, and 
the "tipster" will get his share. The 
one who wins tells his friends, who 
think the "tipster" must be a won- 
derfully shrew^d individual, and in 
this way he builds up a profitable 
business, and the "lambs" come 
flocking his way. He keeps on 
telling one set of his victims to buy 
a certain stock, and another set to 
sell it. Whether the stock goes 
up or down the "tipster" wins, and 
those who are on the right side of 
this particular deal spread his name 
and fame among their acquaint- 
ances. 

"INFORMATION BUREAUS." 

These bureaus are "tipsters" 
49 



pure and simple, only they travel 
under the name of a "bureau," in- 
stead of their individual names. 

"A SCALPER." 

One who is in the market con- 
tinually guessing and gambling on 
the rise or fall. He risks a thousand 
dollars to gain twelve and one-half 
dollars. 

DEALING OX MARGIN. 

This means that the buyer of a 
stock only deposits with his broker 
a small part of the value of the 
shares he is buying or selling. He 
is simply gambling, and very haz- 
ardous gambling it is. If he guesses 
wrong, he must pay up more and 
more margin or lose altogether. 
Dealing on margin is the favorite 
sport of the "lambs," and it is very 
profitable, indeed, to those who 
take advantage of their misfor- 
tunes. The odds are all against the 
speculator on margin, and sooner 
or later his money disappears and 
he disappears with it. 
A SUCCESSFUL OPERATOR. 

A man who is neither "bull" nor 
a "bear," but simply waits and 
takes advantage of opportunities. 
50 



He knows the power of money. 
He knows the weakness of the pub- 
lic, and how gullible it is. He 
knows how to worry and scare the 
people. He sets his machine for 
the game and gets it. Ordinary 
market affairs do not interest him. 
When a "squall" appears he is no- 
tified instantly, and gets ready for 
business. He knows all about the 
stocks that he deals in, precisely 
what they are, and just what to do. 
He knows what to buy and just to 
a fraction when to commence to 
buy it. He gives his orders, pays 
no more attention to it, except to 
see how much he got. He buys 
just as closely to the bottom as it 
is possible to get, and when it is 
all over he goes away happy, ask- 
ing to be notified when the market 
is up again. 



5i 



Conclusion 



CONCLUSION. 

The contents of this book, in- 
cluding the Wall Street definitions 
given above, should give the read- 
er a pretty clear idea of what is 
done on the New York Stock Ex- 
change, and just why and how the 
blundering public is continually 
losing its money and giving Wall 
Street a black name. 

It should convince you that you 
cannot afford to attack Wall Street 
by the methods that have been 
tried so many thousands of times 
and found to be utter failures. 

About the worst possible thing 
that can happen to a man is to take 
a "flyer" in Wall Street and win. 
His winning convinces him beyond 
a doubt that he knows all about it, 
and he goes deeper and deeper, 
sometimes winning a little, but 
oftener losing, until some extraor- 
dinary turn of the market, some 
unforeseen incident, or some reck- 
less piece of speculation wipes him 
out. That is the record of the 
guesses of ninety-nine out of a 
hundred men who try to take 
money out of Wall Street. 

What is the use of following 

i f p 55 

Lot C. 



right along in their footsteps and 
trusting to dumb luck or some- 
thing of that sort to pull you out? 

If you have any money that you 
want to make money with, go into 
Wall Street through our medium, 
and place your money in hands 
where it will not only be perfectly 
safe, but where it will be handled 
in the only way that can possibly 
beat Wall Street. 

There is no doubt at all about 
this. 

The thing can be done, has been 
done, is being done, and will al- 
ways be done. 

And the men who are doing it 
are piling up enormous fortunes 
for themselves, they are the only 
men who get the money in the end. 

If you want to be on their side 
instead of on the losing side, the 
only possible way you can do so is 
in the manner outlined in this book 
and we offer you the best, most 
favorable and safest opportunity. 



56 



Questions and 
Answers 



QUESTIONS AND ANSWERS. 

Q. How many small "lots" can 
you handle with a capital of one 
hundred thousand dollars? 

A. About one hundred. 

Q. In case of a sudden "'slump/' 
say twenty per cent., what is the 
result? 

A. No change of base is made. 

Q. Suppose some lots are on 
hand bought at higher prices ? 

A. They are kept until sold at a 
profit, meantime paying a dividend. 

Q. Why do you buy dividend 
paying stocks ? 

A. Because they carry them- 
selves. 

Q. How often do you make pur- 
chases in a declining market? 

A. That depends on the market, 
the stock, the times, and conditions 
generally, which can be properly 
judged by the managers, who are 
devoting all their time and facilities 
to the business, and know the exact 
condition of every property dealt in. 

Q. What would be the effect of 
an unexpected calamity? 

A. Panics are a great help to this 
method. 

59 



Q. How often do you make pur- 
chases or sales? 

A. About every day, as some one 
or more of the different stocks have 
moved sufficiently to do some pur- 
chasing or selling. 

Q. Do you expect to carry a 
stock a year before you can sell it? 

A. Yes, if necessary, but not 
likely, because first purchase only 
begins when the stock can be had 
at a bargain and is only a small 
"lot," and when the average has 
been reached and sufficient profit 
made, all the little lots may be sold 
as one lot. It is not contemplated 
that this will be done unless it 
was desirable to close out in any 
particular stock. There may be 
some loss on first purchase, but the 
lowest purchases have handsome 
profits, and the transactions as a 
whole renders large returns, 
when it is closed out and the pro- 
cess commenced over again, and 
again. 

Q. Do you guarantee invest- 
ments made in the bonds of your 
companv ? 

A. Yes, because we know the 
security is absolutely safe, and 
60 



we have on hand all the time 
during the three years either the 
cash or an equivalent amount in 
sound dividend shares in the most 
prosperous railway and industrial 
corporations in the world. 

Q. Do you guarantee interest on 
the bonds at the rate of five per 
cent.? 

A. Yes, we guarantee the prin- 
cipal and that the profits to the in- 
vestor shall not be less than five per 
cent, per annum, payable semi-an- 
nually, and we will pay it regularly, 
but it will be charged against the 
gross profits, the same as commis- 
sions. 

Q. How much more than five 
per cent, do you expect the bonds 
will earn? 

A. At least 25 to 50 per cent, 
per annum. 

Q. What are the denominations 
of the bonds ? 

A. Twenty-five dollars and up- 
wards. We issue them in regular 
numbers to the purchasers for the 
amount of his or her investment, 
the same as a life insurance policy 
is issued. 

Q. Will these bonds have a mar- 
61 



ket value during the three years ? 

A. Yes, and will sell above par 
after the first six months. 

O. Why do you issue bonds for 
only twenty-five dollars ? 

A. So as to give small investors 
the opportunity to join with capi- 
talists for savings and better returns 
than they can get elsewhere. 

O. Do you consider your bonds 
as safe and profitable as savings 
banks? 

A. Yes, and more so, because 
the security is better than any sav- 
ings bank which receives money, 
pays a low rate of interest, and 
loans it out on securities that do 
not always have a cash value. Our 
bonds are secured by an equivalent 
in cash or the safest and soundest 
dividend paying securities in the 
world, and can be sold instantly 
every business day in the year; 
furthermore, they earn not less 
than 5 per cent, per annum, with a 
practical certainty of a great deal 
more. 

Q. How do you buy the securi- 
ties? 

A. Through our brokers on the 
floor of the exchanges. 
62 



Q. Can a bondholder in your 
company have information of the 
condition of these investments any 
time? 

A. Yes, every day, if he wishes. 

Correspondence is invited, and 
the fullest information will be 
frankly given. 



Henry^Voorce Brandenburg 4 Co. 

Incorporated, Capital $100,000 

BANKERS 

No. 6 Wall Street New York City 



H. V. Brandenburg, President 
Charles Austin Bates, Treasurer 



63 



Capital for 
Good Projects 



First-class propositions in railroad 
building, gas and water plants, electric 
lighting and power, street car lines, mines 
and industrial and mercantile projects 
fail because those who control them lack 
capital or the knowledge and facilities 
for obtaining it. 

It is our business to supply capital for 
meritorious enterprises. Thousands of 
people have millions of dollars to invest, 
and yet hundreds of good enterprises lie 
dormant for lack of cash. There is 
plenty of money for any really good 
projects. 

We organize companies, effect consoli- 
dations, create and guarantee bond issues 
and act as trustees and fiscal agents. 

We buy and sell Government Bonds 
and other securities dealt in on the New 
York Stock Exchange and other ex- 
changes, and give disinterested advice to 
clients seeking investments. 

We own and control investment securi- 
ties paying from 3^ to 12 per cent, divi- 
dends, and will be pleased to send our 
regular list on request. 

We buy and sell real estate and deal in 
real estate loans. 



Henry Voorce 
Brandenburg 6 Co. 

BANKERS 

6 Wall St., New York City 

BRANCH OFFICES 
Girard Building, PHILADELPHIA 
Salisbury House, a LONDON 




